While the world’s attention was fixated on US$ repo for once, the Bank of Japan held a policy meeting and turned in an even more “dovish” performance.
The WTO today downgraded its estimates for global trade growth. In April, the international organization had figured the total volume of world merchandise trade would expand by about 2.6% in all of 2019 once the year closed out on the anticipated second half rebound. Everyone took their lumps in H1 and the WTO like central […]
With China closed for its National Day Golden Week holiday, the stage was set for Japan to steal the market spotlight. If only briefly. The Bank of Japan announced last night that it had had enough of the JGB curve. The 2s10s very nearly inverted last month and BoJ officials released preliminary plans to steepen […]
One of the most maddening aspects of the recent repo market, federal funds mashup is the lack of context behind it. The event is being characterized and described as if in isolation. Regulations are squeezing dealers at the same time there is a lack of bank reserves. Thanks to QT, there’s just not enough liquidity […]
For once there is widespread skepticism. Not about the printing press, at least not yet, but for the first time serious questions are being asked about what the Fed can and does actually do.
In other words, the US central bank is already way behind the curve on two key fronts.
Where are the dealers? Policymakers at FRBNY would now like to know – even though it has been their one damn job for decades.
the takeaway from all of September should be the world’s two most important central banks each botching their “accommodations.”
It wasn’t one and done like Chairman Powell had initially indicated, this “midcycle adjustment” hits two. And that is it, at least if you believe the current calculations spit out by the Fed’s models.
The FOMC will surely declare the repo operations a complete success. They were not.
